Taiwan's Yang Ming Marine Transport has fallen to a loss of TWD 6.59bn ($218.5m) as higher fuel prices hit the bottom line.
This compares with a profit of TWD 492m in 2017.
Revenue was up 8% at TWD 141.83bn, with volumes increasing 11% year on year to 5.23 million teu.
The company said its result had been "significantly impacted" by global bunker fuel prices, which were 31.17% higher than in 2017.
"Freight rates struggled to rise to levels that could set off against the higher bunker costs," it added.
Looking ahead, it said that unsettling geopolitical risk factors, including the ongoing US-China trade war and Brexit, continue to impact bunker fuel prices and conditions in global trade.
"In addition, the IMO 2020 regulations ... will inevitably increase operating costs, as global carriers decide between installing scrubbers on vessels or using more costly low-sulphur fuel in order to be in compliance," it added.
Supply balance improving
It quoted Alphaliner as saying the ship supply growth rate in 2019 is projected to be 3.1%, while demand will grow at about 3.6%.
"Therefore, the trend in global shipping is moving towards a more balanced level of supply and demand. Driven by the IMO 2020 low-sulphur regulations, the world’s fleet may also see a greater number of older, inefficient vessels scrapped in the near term, which would add complexity and challenges to the shipping market," it said.
"In light of the uncertainties surrounding global trade and the pressure on bunker prices, Yang Ming remains cautiously conservative on its outlook for 2019."
